All posts tagged palinka

Brussels took Hungary to the European Court of Justice again, this time hitting a very soft spot: Hungary’s national alcoholic beverage, the palinka.

Allowing people to make below 50 liters a year of their own palinka without having to pay excise taxes was the first move Prime Minister Viktor Orban’s government made when it came to power in 2010. It was a very popular measure–distilling palinka is very widespread in the Hungarian countryside, the higher the alcohol level (measured in degrees), the better.

Drinking homemade booze is not unique to Hungary in the European Union, that’s why the Brussels regulation is also very tame on excise tax for quantities below 50 liters a year per household. Below this quantity, EU law allows countries to apply a discount excise tax on liquor made from home-grown fruits and ingredients, but at least half of the excise tax level of the given member state.

Tax-free is not an option, however, that’s why the case went to the European Court of Justice.

Hungary’s economy ministry said it would fight there to keep the exemption. Some EU countries such as Austria, Germany, Slovenia and Portugal make tax exemptions for small amounts of home-distilled spirits, it said. Read More »

One of the first election promises Hungary’s governing center-right Fidesz party wants to fulfill is to allow people to distill their own palinka, Hungary’s national alcoholic beverage.

A strong but tasty traditional Hungarian spirit with alcohol content above 37.5%, palinka is similar to grappa and distilled from almost any kind of fruit or grape pomace.

Alcohol distillation has so far been heavily regulated and taxed in Hungary, allowing production only at licensed distilleries. Black-market production and sales of palinka were widespread in the Hungarian countryside, and town folks treasure the home-made drink produced there. Peach, pear, plum or grape are the most popular palinka varieties—but there even are kosher versions. Read More »

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